Moody's assigns Indofood, bonds Baa3

Moody's Investors Service said it assigned Baa3 ratings to PT Indofood Sukses Makmur Tbk. and its planned dollar-denominated bonds. This is the first time Moody's has assigned ratings to ICBP.

"ICBP's Baa3 ratings reflect its dominant market position as the largest instant noodle producer in Indonesia, its strong brand recognition, a long track record of steady earnings growth and free cash flow generation and an excellent liquidity profile," said Stephanie Cheong, a Moody's analyst, in a press release.

"At the same time, the ratings are constrained by the fact that ICBP's vertical integration with other Indofood group companies exposes it to significant related party risks and governance concerns, which are only partially mitigated by ICBP's strategic importance to the Indofood group," added Cheong.

ICBP will primarily use the proceeds to refinance its acquisition debt.

The outlook is stable.

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